-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MemPv5ueY/gG956oC5mpwRmsOnMm8oTsquQ0wQsQ+AbG1iCXh5kfomrlXLrsr6SL kKlNm0DiggYflgSZxh1oYQ== 0000950109-97-003692.txt : 19970507 0000950109-97-003692.hdr.sgml : 19970507 ACCESSION NUMBER: 0000950109-97-003692 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970506 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: WISER OIL CO CENTRAL INDEX KEY: 0000107874 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 550522128 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12640 FILM NUMBER: 97596629 BUSINESS ADDRESS: STREET 1: 8115 PRESTON RD STE 400 CITY: DALLAS STATE: TX ZIP: 75225 BUSINESS PHONE: 2142650080 MAIL ADDRESS: STREET 1: 8115 PRESTON ROAD STREET 2: SUITE 400 CITY: DALLAS STATE: TX ZIP: 75225 10-Q 1 FORM 10-Q ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTER ENDED MARCH 31, 1997 COMMISSION FILE NUMBER 0-5426 THE WISER OIL COMPANY A DELAWARE CORPORATION I.R.S. EMPLOYER IDENTIFICATION NO. 55-0522128 8115 PRESTON ROAD, SUITE 400 DALLAS, TEXAS 75225 TELEPHONE (214) 265-0080 Former name, former address and former fiscal year, if changed since last report. NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. x --- --- Yes No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. Class Outstanding at March 31, 1997 ------------- ----------------------------- $3 par value 8,948,840 ================================================================================ THE WISER OIL COMPANY PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The consolidated condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments which are, in the opinion of management, necessary to fairly present such information. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies, normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. 2 THE WISER OIL COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 31, DECEMBER 31, (000's) except share data 1997 1996 ---- ---- Assets Current Assets: Cash and cash equivalents $ 2,116 $ 5,870 Accounts receivable 13,460 14,091 Inventories 1,512 1,289 Prepaid expenses 1,455 473 --------- ----------- Total Current Assets 18,543 21,723 --------- ----------- Marketable Securities 5,748 7,176 Property, Plant and Equipment, at cost: Oil and gas properties (successful 317,472 306,716 efforts method) Other properties 5,601 4,974 --------- ----------- 323,073 311,690 Accumulated depreciation, depletion (137,730) (131,972) and amortization --------- ----------- Net Property, Plant and Equipment 185,343 179,718 Other Assets 148 - --------- ----------- $ 209,782 $ 208,617 ========= =========== Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 11,359 $ 14,996 Accrued income taxes 2,220 1,697 Accrued liabilities 1,373 1,537 --------- ----------- Total current liabilities 14,952 18,230 --------- ----------- Long Term Debt 76,908 78,654 Deferred Benefit Cost 1,619 1,496 Deferred Income Taxes 11,879 10,975 Stockholders' Equity: Common stock - $3 par value 20,000,000 shares authorized; 9,115,572 shares issued; 8,948,840 and 8,939,368 27,375 27,347 shares outstanding at March 31, 1997 and December 31, 1996, respectively Paid-in capital 3,194 3,078 Retained earnings 72,258 66,385 Marketable securities valuation 3,462 4,328 adjustment Foreign currency translation 864 853 Treasury stock; 176,204 shares, at (2,729) (2,729) cost --------- ----------- Total stockholders' equity 104,424 99,262 --------- ----------- $ 209,782 $ 208,617 ========= ===========
The notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996 are an integral part of these financial statements. 3 THE WISER OIL COMPANY CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, ------------------------------------ (000's except per share data) 1997 1996 ---- ---- Revenues: Oil and gas sales $ 23,062 $ 16,233 Dividends and interest 121 212 Marketable security sales gains 1,813 2,005 Other 579 117 -------- -------- 25,575 18,567 -------- -------- Costs and Expenses: Production and operating 6,802 5,623 Purchased natural gas 513 353 Depreciation, depletion and 5,767 4,954 amortization Exploration 621 1,266 General and administrative 2,378 2,795 Interest expense 1,264 1,360 -------- -------- 17,345 16,351 -------- -------- Income Before Income Taxes 8,230 2,216 Income Tax Expense 2,089 705 -------- -------- NET INCOME 6,141 1,511 Retained Earnings, beginning of year 66,385 61,030 Dividends Paid (268) (268) -------- -------- Retained Earnings, end of year $ 72,258 $ 62,273 ======== ======== Average Outstanding Shares 8,949 8,939 ======== ======== Earnings Per Share $ .69 $ .17 ======== ======== Cash Dividends Per Share $ .03 $ .03 ======== ========
The notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996 are an integral part of these financial statements. 4 THE WISER OIL COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, ------------------------------------ (000's) 1997 1996 ---- ---- Cash Flows From Operating Activities: Net income $ 6,141 $ 1,511 Adjustments to reconcile net income to operating cash flows: Depreciation, depletion and 5,767 4,954 amortization Deferred income taxes 1,350 231 Marketable securities & property sale (2,283) (2,044) gains Foreign currency translation 11 (13) Property abandonments 245 1,022 Other Changes - Accounts receivable 631 (742) Inventories (223) 100 Prepaid expenses (982) (104) Other assets (148) 34 Accounts payable (3,637) 401 Accrued income taxes 523 (279) Accrued liabilities (164) 176 Deferred benefits cost 123 124 --------- -------- Operating Cash Flows 7,354 5,371 --------- -------- Cash Flows From Investing Activities: Additions to property, plant and (12,725) (8,926) equipment Proceeds from sales of property, 1,558 51 plant and equipment Proceeds from marketable security 1,929 2,178 sales --------- -------- Investing Cash Flows (9,238) (6,697) --------- -------- Cash Flows From Financing Activities: Long term debt issued 22,163 10,122 Payments on long term debt and other (23,909) (7,165) liabilities Common stock issued 144 - Dividends paid (268) (268) --------- -------- Financing Cash Flows (1,870) 2,689 --------- -------- Net Increase (Decrease) In Cash (3,754) 1,363 Cash and Cash Equivalents, beginning of 5,870 1,397 year --------- -------- Cash and Cash Equivalents, end of year $ 2,116 $ 2,760 ========= ========
The notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996 are an integral part of these financial statements 5 THE WISER OIL COMPANY ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMPARISON OF QUARTER ENDED MARCH 31, 1997 TO QUARTER ENDED MARCH 31, 1996 Revenues for the first quarter of 1997 increased $7.0 million or 38% over the first quarter of 1996, primarily as a result of higher oil and gas production and prices. Net production for the first quarter of 1997 increased 115,000 BOE or 10% over the first quarter of 1996 to 1,299 MBOE. The increase in net production was attributable primarily to higher oil production from the Maljamar properties in New Mexico as a result of continued development drilling. The average price received for oil during the first quarter of 1997 increased $1.97 per Bbl or 11% over the first quarter of 1996; the average price received for natural gas during the first quarter of 1997 increased $0.96 per Mcf or 57% over the first quarter of 1996; the average price received for NGLs during the first quarter of 1997 increased $2.55 per Bbl or 20% over the first quarter of 1996. Adjustments to oil and gas sales from the Company's hedging activities resulted in a reduction of $1.0 million in oil and gas revenues during the first quarter of 1997 as compared to a reduction of $0.9 million during the first quarter of 1996. The Company recognized a pretax gain of $1.8 million from the sale of marketable securities during the first quarter of 1997 compared to a pretax gain of $2.0 million in the first quarter of 1996. The Company plans to liquidate its remaining portfolio of marketable securities during 1997. Production and operating expense for the first quarter of 1997 increased $1.2 million or 21% over the first quarter of 1996. The increase was due primarily to additional development wells completed at the Maljamar properties and higher production taxes associated with higher oil and gas prices received during the first quarter of 1997. On a BOE basis (excluding 168 MMcf and 134 MMcf of natural gas purchased for resale during the first quarter of 1997 and 1996, respectively), production and operating expense increased to $5.35 per BOE or 10% during the first quarter of 1997 from $4.84 per BOE during the first quarter of 1996. Depreciation, depletion and amortization for the first quarter of 1997 increased $0.8 million or 16% over the first quarter of 1996, primarily as a result of higher production volumes. Exploration expense for the first quarter of 1997 decreased $0.6 million or 51% as compared to the first quarter of 1996, primarily as a result of lower dry hole expense resulting from reduced exploratory drilling activity in Canada. General and administrative expense during the first quarter of 1997 decreased $0.4 million or 15% as compared to the first quarter of 1996, primarily as a result of higher legal fees incurred in the first quarter of 1996 in connection with a lawsuit won by the Company. The effective income tax rate for the first quarter of 1997 was 25% compared to 32% for the first quarter of 1996, due to the inclusion of Canadian tax losses beginning January 1, 1997 as a result of a corporate restructuring of the Company's Canadian operating subsidiary. The Company realized net income of $6.1 million and earnings per share of $0.69 during the first quarter of 1997, compared to net income of $1.5 million and earnings per share of $0.17 during the first quarter of 1996. The Company's Canadian operations incurred a net loss of $0.9 million during the first quarter of 1997, compared to a net loss of $1.0 million during the first quarter of 1996. Additions to property, plant and equipment were $12.7 million in the first quarter of 1997 (including $1.0 million of costs incurred in connection with exploratory drilling in progress on the South Lakeside prospect in Louisiana) compared to $8.9 million for the first quarter of 1996. The increase was due primarily to the addition of secondary recovery facilities at the Maljamar properties and the acquisition of unproved leasehold acreage. On March 10, 1997, the Company borrowed $23.9 million under the Credit Agreement to pay in full its outstanding indebtedness under the Maljamar Credit Facility and terminated such facility. The Company reduced its total long-term debt by $1.7 million during the first quarter of 1997 compared to an increase in total long-term debt of $3.0 million during the first quarter of 1996. 6 THE WISER OIL COMPANY COMPARISON OF QUARTER ENDED MARCH 31, 1997 TO QUARTER ENDED MARCH 31, 1996 (continued) NOTES TO FINANCIAL STATEMENTS - See notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits -------- The information required by this Item 6 (a) is set forth in the Index to Exhibits accompanying this quarterly report and is incorporated herein by reference. (b) Reports on Form 8-K ------------------- None 7 THE WISER OIL COMPANY SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE WISER OIL COMPANY ____________________________________ (Registrant) Date: May 6, 1997 /s/ Andrew J. Shoup, Jr. ------------------------------------ Andrew J. Shoup, Jr. President and Chief Executive Officer Date: May 6, 1997 /s/ Lawrence J. Finn ------------------------------------- Lawrence J. Finn Vice President, Finance and Chief Financial Officer 8 THE WISER OIL COMPANY INDEX TO EXHIBITS Exhibit Number Exhibit ------ ------- 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 2,116 5,748 13,460 0 1,512 18,543 323,073 137,730 209,782 14,952 0 0 0 27,375 77,049 209,782 23,062 25,575 7,315 17,345 0 0 1,264 8,230 2,089 6,141 0 0 0 6,141 .69 .69
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